This is a good time to consolidate your holdings for the long term. Donald Trump has just assumed office and any change in policy stance & decisions taken will be critical to how markets behave in the near future, but being a businessman himself he is unlikely to take any decisions which could have a negative economic outcome. Recovery in commodity prices also indicates towards an economic recovery globally. The implementation of the GST Bill is just a matter of time as it is likely to be beneficial to all parties & states, not only the central government. Low inflation and declining interest rate augers well for India. Declining bank interest rates, gold prices & subdued real estate market post demonetization augers well for equities and makes it an attractive asset class. Thus we feel this is a good time to consolidate your holdings in equities for the next up move in the stock markets.
Sabyasachi Paul has been associated with equity research and advisory on equity markets in India for over 9 years & currently heads the equity research desk of Eastern Financiers Ltd, Kolkata.He also manages a portfolio on the online platform Kristal. Find link to the strategy named ‘The Tortoise’